Form 8832 “Entity Classification Election” ApprovalPosted on January 18 2012 by admin
After filing Form 8832, Entity Classification Election, the IRS will send a letter of acceptance or rejection usually within 60 days. If the election is accepted, you are required to attach a copy of Form 8832 to your tax return for the year the election is effective. Failure to attach the 8832 will not invalidate an otherwise valid election, but penalties may be assessed for those who are required to attach the form and do not. Penalties may also be assessed to those who file inconsistent with the entity’s election. If the entity isn’t required to file a tax return that year, a copy of the 8832 must be attached to the tax returns of all direct or indirect owners of the entity. It’s also a good idea to attach the acceptance letter to the copy of the 8832 with your tax return to ensure correct processing and avoid any potential IRS discrepancies or notices.
What happens if you misplaced this letter or never received one? You can write or call the IRS and request another copy be mailed; however, this usually takes several weeks and can be very time consuming if you are on a lengthy hold with the IRS call center. Alternatively, you can fax the IRS Entity Department at (801) 620-7116, Attn: “Entity”, and request the letter to be returned by fax. If you are not an owner or other approved representative of the entity and are making the request, you must also attach a signed Power of Attorney to the fax request. The IRS should send the faxed reply within 7 – 10 business days, however, could take up to 60 days in some cases. If you hear no reply within 60 days, you can send the fax request again with bold letters on the cover page saying, “2nd Notice Fax”.
Jill A. Helm, CPA
There is nothing more complex than the world of taxes. We know this and yet we chose careers where we face these issues everyday. We get questions day in and day out about new tax laws, forms and news items and how they affect everyday people and businesses. Well, here at Henry & Horne we have set out to do what we do best; help everyday people understand what is going on in the world of state, local, federal, estate and international taxation. We will provide these weekly posts and we encourage you to give us feedback on those posts as well as letting us know what else you would like to know more about. Welcome to "Tax Insights." We hope you find this blog informative and worthy of your time.
Before posting a comment on a blog post please be aware that we do not give free tax advice to non-clients by email, comment response, or phone. Thank you!
- Government Forgives Certain Student Loan Debts
- An Easier, Cheaper 60 Day Rollover Waiver
- Hardship Distributions
- Transfer Pricing, IRC 482 and Control
- Taking on the Tax Court – What Happened to Bruno?
- Sales Tax Audits
- Fiduciary Access to Digital Assets and Accounts
- When You Sell Your Home Impacts Your Taxes
- Irrevocable Trust v QPRT: Part II
- Personal Residence: Irrevocable Trust or QPRT?